Mergers Among Private Higher Education Institutions in Ecuador: Procedures and Recommendations

Abstract

This study examines the procedures and regulations governing the merger of private higher education institutions in Ecuador, taking into account legal and administrative aspects. The research focuses on a review of the Organic Law of Higher Education and its regulations, which allow for two types of mergers: creation mergers (where the original entities are dissolved to form a new one) and absorption mergers (where one institution absorbs another, which ceases to exist as an independent entity). The necessary administrative steps are identified, such as academic and patrimonial compatibility and approvals by the institutions' internal governing bodies and the Higher Education Council. Although the legal framework is clear, mergers among private institutions are uncommon in Ecuador, being more frequent among public entities. This limited practice in the private sector presents additional challenges and highlights the need for documentation and precedents to guide future integrations. The study provides recommendations to enhance procedural clarity and encourage a greater use of mergers as a sustainable growth strategy in Ecuador's private education sector.